The difference between the selling price per unit and the variable cost per unit is the:
A)contribution to the bottom line
B)contribution to revenue
C)contribution margin
D)contribution to EBIT

Question

Quizplus · Accepted Answer

The difference between the selling price per unit and the variable cost per unit is known as the contribution margin. It represents the amount of money that is available to contribute towards covering fixed costs and generating profit. Therefore, the correct choice is C - contribution margin.

The Difference Between the Selling Price Per Unit and the Variable